Labour leader Sir Keir Starmer’s efforts to rebuild the party’s relationship with British businesses has been a top priority in his mission to restore the party’s reputation. The private sector is crucial to their economic plan, as they rely on its growth to fund their plans for public services. After facing resistance due to the previous Labour government’s policies, which were seen as unfriendly towards businesses, Sir Keir and his potential chancellor Rachel Reeves have been working to change the sentiment.
Their charm offensive, which included over a thousand working breakfasts, has been largely successful, according to delegates and speakers at the recent British Chambers of Commerce conference. Many are now optimistic about the opportunity to move past years of economic uncertainty and animosity from Conservative administrations. Amanda Blanc, chief executive of insurance giant Aviva, noted the “weariness and cynicism” that has been hanging over the economy and stated that a stable policy after the election could encourage investment. Paul van Zyl, founder of The Conduit, a members club for “changemakers,” also praised Labour’s approach, stating that they come across as “thoughtful and sober-minded” with a focus on evidence-based decision making.
However, rebuilding the economy will require more than just good vibes. Labour will face pressure to address the concerns of businesses, as they transition from the opposition to the governing party. Stability is a key component of Labour’s pitch, as highlighted by Jonathan Reynolds, who is set to become the party’s business secretary. He emphasized their plans for growth, including reforming planning, investing in skills, and transitioning to clean energy.
One area of particular interest is Labour’s stance on Brexit, which has been largely absent from this campaign. The BCC has called on the new government to address the shortcomings of the current deal with the EU, which has not been working well for their members. Mr. Reynolds acknowledged this and stated that Labour would seek closer alignment on food safety standards and reduce red tape for touring musicians. However, he made it clear that Labour would not be seeking to rejoin the single market or the customs union, as they believe it would not provide the necessary stability. This may disappoint those who see the EU as a direct path to economic growth.
Another source of uncertainty is Labour’s plans to improve workers’ rights. Deputy leader Angela Rayner is leading the charge for a “new deal for working people,” which includes a guarantee of full employment rights from day one of starting a job. This has caused concern among businesses, with some fearing increased costs. Mr. Reynolds reassured them that these changes would not hinder recruitment, but it serves as a reminder that the hard work for Labour is just beginning if the polls are correct.